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Central IL | My guess is they look for the guys with the most leverage. Only way to grow as fast as these guys is to have outside investers who will then control the operation or else have unsustainable debt service. Think about it. If you have a great year and plow all of the aftertax profit back into farm equity, how much does farm equity increase? 10 maybe 20 per cent per year best case. Averaged over several years, that is all the faster you can grow without increasing leverage percentage. No possible way to grow at the rate these guys do without lying on the loan forms and also having a stupid banker.
Edited by Hanktbd 11/22/2012 22:35
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